Dow fires executives for unauthorised merger talks

By Emma Thelwell

12:01AM BST 12 Apr 2007

The Dow Chemical Company has fired two senior executives for unauthorised buyout talks.

The largest US chemical maker first discovered on Tuesday that Pedro Reinhard, a board member and senior adviser, and Romeo Kreinberg, executive vice president of the group's performance plastics and chemicals operations, had been discussing a potential acquisition of the company by a third party.

The duo were "engaged in business activity that was highly inappropriate and a clear violation of Dow's code of business conduct," the company said.

The decision to fire the executives was made today with the full support of the board of directors, Dow said in a statement.

Andrew Liveris, chairman and chief executive, said: "We are greatly saddened by the disrespect shown by our former colleagues. But we will move on to shape our future with an even greater resolve to execute our strategy and deliver to our shareholders."

Dow hit the headlines earlier this week, after it was reported that a consortium of Middle Eastern investors and US buyout firms, including KKR, were preparing an approach for the chemical group that would value the company at £25bn.